ArcLight Capital Partners, LLC recently made a $100 million equity commitment to JP Energy Partners, allowing JP Energy to significantly expand its propane-related business. Essentially, JP Energy acquires and consolidates propane businesses, including retailers and distributors catering to both commercial and residential customers.
In late June, ArcLight made its first installment, enabling JP Energy to acquire several propane retail companies, supplementing existing assets. Now, JP Energy’s operations control around 27 million gallons in annual propane sales in the United States, making it one of the country’s biggest propane retailers.
As ArcLight is one of the world’s leading energy investment firms, this initial investment demonstrates solid confidence in America’s growing propane industry, for good reason. The most popular alternative fuel in the world, propane is slowly beginning to gain the recognition it deserves in the U.S. for being an eco-friendly, affordable fuel for vehicles, home heating, and an array of appliances.
“We feel like the regional footprint of the propane operations we’ve accumulated since 2010 will position us to be a key player in the propane industry for years to come,” said J. Patrick Barley, president and CEO of JP Energy Partners. “We are committed to the industry and JP Energy will continue to pursue acquisitions in an effort to expand our footprint going forward.”